Eastroc Beverage(605499) Orient Securities·2025-04-20 06:06Investment Rating - The report maintains a "Buy" rating for the company with a target price of 321.47 CNY, based on an estimated equity value of 167.2 billion CNY [2][4]. Core Insights - The company's revenue and profit growth have exceeded expectations, with a forecasted revenue increase for 2025-2026 and projected earnings per share of 9.13, 11.85, and 13.79 CNY for 2025, 2026, and 2027 respectively [2][10]. - The report highlights the effectiveness of new product channel reuse and sustained high growth in traditional market bases [1][9]. Financial Performance Summary - Revenue for 2023 is projected at 11,263 million CNY, with a year-on-year growth of 32.4%. By 2027, revenue is expected to reach 30,570 million CNY, with a growth rate of 13.3% [3][15]. - Operating profit is forecasted to grow from 2,588 million CNY in 2023 to 8,975 million CNY in 2027, reflecting a compound annual growth rate of 16.4% [3][15]. - Net profit attributable to the parent company is expected to increase from 2,040 million CNY in 2023 to 7,173 million CNY in 2027, with a growth rate of 16.4% [3][15]. - The gross margin is projected to improve from 43.1% in 2023 to 48.7% in 2027, while the net margin is expected to rise from 18.1% to 23.5% over the same period [3][15]. Product Performance - In Q1 2025, the company achieved a revenue of 48.48 billion CNY, a year-on-year increase of 39.23%, with a net profit of 9.80 billion CNY, up 47.62% [9]. - The revenue from the flagship product, Dongpeng Special Drink, was 39 billion CNY, growing by 25.7% year-on-year, while the electrolyte drink revenue surged by 261.5% [9]. Market Position and Growth - The company has demonstrated strong growth in various regions, with notable increases in revenue from the Southwest (61.78%) and North China (71.67%) [9]. - The report emphasizes the company's robust distribution network, with 4 million terminal points enhancing its market reach and product availability [9].